Ghandhara posts Rs650mn profit in H1FY25, rebounding from loss

February 26, 2025 (MLN): Ghandhara Automobiles Limited (PSX: GAL) reported a profit of Rs650.16 million [EPS: Rs11.41] for the half year ended December 31, 2024, compared to a loss of Rs175.11mn [LPS: Rs3.07] in the same period last year (SPLY).

The company's revenue surged by 104.1% to Rs4.41 billion, primarily driving the turnaround in profitability.

Despite a 74.6% rise in the cost of sales, gross profit skyrocketed by 1,471.8% to Rs716.57mn.

However, administrative expenses remained nearly flat at Rs130.72mn, while distribution costs increased by 18.6% YoY to Rs77.69mn.

Other income more than doubled, reaching Rs317.01mn, while other expenses surged significantly to Rs34.67mn, reflecting a 1,378.97% jump.

GAL's finance costs declined by 40.08% YoY to Rs114.42mn, providing relief to the bottom line.

As a result, profit before tax stood at Rs676.08mn, a significant recovery from a loss of Rs211.82mn in SPLY.

On the taxation front, the company booked a deferred tax charge of Rs55.5mn, while prior-year tax adjustments of Rs98.18mn provided some cushion.

Overall, total comprehensive income for the period reached Rs650.16mn, marking a remarkable turnaround from last year’s losses.

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